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% FEDERAL RESERVE BANK L'4.3. Not for publication of KANSAS CITY JAN 31 1 £ 6 3 BANKING M D F E M M G F I IN DECEMBER 1962 Total commercial bank credit, seasonally adjusted, increased further in December reflecting substantial loan growth. Holdings of U. S„ Government and othpr securities rose less than usual. The money supply and time and savings deposits at commercial banks continued to expand rapidly. Total and required reserves rose while free reserves declined. Bank c r e d i t . Total loans and investments at a l l commercial banks, seasonally adjusted, increased $1.8 b i l l i o n further between November 28 and December 31» (All c r e d i t items have been estimated for December 31? the date to which seasonal f a c t o r s apply, rather than using December 26, the l a s t Wednesday. Normally, c r e d i t increases sharply between the l a s t Wednesday of December and the 3 1 s t , and t h i s expansion should be r e f l e c t e d in monthly data for December). The December r i s e was about i n l i n e with average growth over other recent months. Seasonally adjusted t o t a l loans rose a record $2.5 b i l l i o n in December, r e f l e c t i n g in part a sharp r i s e in s e c u r i t y l o a n s . Holdings of U. So Government and other s e c u r i t i e s rose l e s s than usual. Credit expansion was large a t both weekly reporting banks i n leading c i t i e s and at other bankso Over 1962, c r e d i t at a l l commercial banks increased about $19 b i l l i o n , $3 b i l l i o n more than the previous record expansion in 1961. The annual rate of growth of about 8 - 1 / 2 per cent, however, was about the same as the high growth r a t e s of 1961 and 1958. Most of the 1962 c r e d i t expansion was i n l o a n s , which rose about $14 b i l l i o n or 11 per c e n t . This was a l s o a larger d o l l a r increase than i n any past year but the rate of growth was below that of 1959 and 1955» Holdings of State and l o c a l and nonguaranteed Federal agency i s s u e s rose a record $5*3 b i l l i o n in 1962, and the rate of growth was f a s t e r than in any other year except 1950. Holdings of U. S. Government s e c u r i t i e s , however, declined s l i g h t l y i n 1962 whereas they had accounted for a s u b s t a n t i a l part of the rapid c r e d i t expansions of 1961 and 19580 Credit growth was large at both weekly reporting banks in leading c i t i e s and at other banks but i t was of record proportions, both i n volume and r a t e , at the l a t t e r group. Business loans at a l l commercial banks, s e a s o n a l l y adjusted, increased $600 m i l l i o n further i n December (estimated through December 31)> about the same as in other recent months. Growth was at a considerably f a s t e r rate i n the second half of 1962 than i n the early months of the year. Over 1962, business loans increased about $4 b i l l i o n , somewhat l e s s than i n most other recent years of h i g h - l e v e l economic a c t i v i t y . Business loans at weekly reporting banks increased $485 m i l l i o n over the four weeks ending December 26, much l e s s than i n the corresponding weeks of 1961 but a l i t t l e more than i n December 1959° Business borrowing over the mid-December tax and dividend payment period was smaller than i n the c o r r e s ponding weeks of 1961 and i960 although tax payments were of comparable volume and there were no maturing tax b i l l s i n any of these years 0 Corporations apparently obtained funds by s e l l i n g U0 S* Government s e c u r i t i e s to a greater extent than usual and by borrowing l e s s than usual from banks 0 Government s e c u r i t y d e a l e r s , i n turn? however 9 acquired unusually l a r g e trading p o s i t i o n s and borrowed h e a v i l y from bankso At c i t y banks i n December, loans to food processors rose about seasonallyo Trade loans declined l e s s than u s u a l , but loans to commodity d e a l e r s , which u s u a l l y r i s e i n December, a l s o declined 0 Loans declined more than usual i n the t e x t i l e s industry and rose l e s s than usual i n the metals and petroleum i n d u s t r i e s * Loans to public u t i l i t i e s , which had been i n c r e a s ing sharply i n recent months , rose s u b s t a n t i a l l y further i n December as did those to " a l l other b u s i n e s s e s 011 Seasonally adjusted s e c u r i t y loans at a l l commercial banks increased $600 m i l l i o n i n December, At weekly reporting banks i n l e a d i n g c i t i e s (between the l a s t Wednesday of November and the l a s t Wednesday of December) loans on Uo So Government s e c u r i t i e s increased almost $1 b i l l i o n , and those on other s e c u r i t i e s , about $700 m i l l i o n , both much more than i n the corresponding weeks of past years 0 Over 1962, t o t a l s e c u r i t y loans increased $1 b i l l i o n , about the same as l a s t year, but more than in any other recent year 0 Loans to nonbank f i n a n c i a l i n s t i t u t i o n s a l s o increased $1 b i l l i o n i n 1962; growth had a l s o been large i n 1959 and 1955 but small i n other y e a r s . Real e s t a t e loans at a l l commercial banks increased further i n December although probably not quite as rapidly as i n other recent months 0 Over 1962, they showed a record r i s e of $4 b i l l i o n „ Consumer loans expanded moderately further i n December and over the year rose $2*2 b i l l i o n , somewhatl e s s than i n 1959 and 1955« Money supply 0 The d a i l y average money supply, s e a s o n a l l y adjusted, increased $1*2 b i l l i o n between the second h a l f of November and the second h a l f of December, f o l l o w i n g s u b s t a n t i a l expansion over the two previous months» This brought the annual rate of growth over the fourth quarter t o 8 - 1 / 2 per cent and over the year to 1 - 1 / 2 per cento Seasonally adjusted time and savings d e p o s i t s at a l l commercial banks increased $1o5 b i l l i o n between the second h a l f of November and the second h a l f of Decembere This was about the same as i n October and November and more than i n other recent months 0 Over 1962, time and savings d e p o s i t s increased $15 e 2 b i l l i o n or more than 18 per c e n t , a postwar record* At weekly reporting banks i n l e a d i n g c i t i e s , growth i n savings d e p o s i t s , as i n November, was smaller than i n other recent months. Other time d e p o s i t s of i n d i v i d u a l s , partnerships, and corporations, increased sharply in December, however, f o l l o w i n g l i t t l e change over the summer and f a l l o - 3 The s e a s o n a l l y adjusted annual rate of turnover of demand d e p o s i t s at banks i n 3^3 c e n t e r s ourside New York was 31»3 (preliminary) i n December compared with 3 2 , 6 i n November. Over the fourth quarter of the year, turnover averaged about 7 - 1 / 2 per cent above the corresponding period l a s t year. Bank r e s e r v e s . Total and required r e s e r v e s of member banks i n creased i n December. Excess r e s e r v e s declined somewhat to $560 m i l l i o n while member bank borrowings from the Federal Reserve rose to $305 m i l l i o n . Free reserves dropped to $250 m i l l i o n from $4?0 m i l l i o n i n November. The December l e v e l was the lowest monthly average s i n c e mid-1960. Free r e s e r v e s d e c l i n e d at country banks i n December and net borrowed r e s e r v e s rose at c i t y banks. The e f f e c t i v e rate on Federal funds was u s u a l l y about 2 - 7 / 8 per cent i n e a r l y December but a f t e r the midmonth was c o n s i s t e n t l y at 3 per c e n t . During December, on a monthly average b a s i s , r e s e r v e s were supplied, by a $600 m i l l i o n increase i n f l o a t to a record l e v e l of $2.3 b i l l i o n . In a d d i t i o n , System holdings of U. S. Government s e c u r i t i e s increased $350 m i l l i o n . Reserves were absorbed p r i n c i p a l l y by a $700 m i l l i o n pre-Christmas currency drain. Revised s e r i e s on "Total Reserves, Seasonally Adjusted." A r e v i s e d s e r i e s on s e a s o n a l l y adjusted t o t a l r e s e r v e s i s now a v a i l a b l e and r e p l a c e s the one p r e v i o u s l y shown i n Exhibit J of t h i s Report. Monthly data, s e a s o n a l l y unadjusted and adjusted, along with seasonal f a c t o r s , beginning i n 1$48, have been appended as Exhibit L i n t h i s i s s u e . Basic data have been r e v i s e d i n accordance with the recent changes i n reserve requirements a g a i n s t time dep o s i t s , and new seasonal f a c t o r s have been developed. Banking S e c t i o n , D i v i s i o n of Research and S t a t i s t i c s , Board of Governors of the Federal Reserve System. January 15, 1963 1.4.3 r - EXHIBIT A, Port 1 L O A N S A N D I N V E S T M E N T S AT ALL C O M M E R C I A L B A N K S 140 210 VI I0TAI LOANS AND IN:STWENTS^^_ 1 180 140 ioANS™ 100 V. $. GOVT. S:ECURITIES *0 OTHER SECURITIES L-^r——i i 1958 1957 1 1959 1 1960 . — 1942 1941 'X/1 20 1943 Exhibit A - Part I I Total 1 / Date Loans l / U. S. Gov't, s e c u r i t i e s Other s e c u r i t i e s (In b i l l i o n s of d o l l a r s ) 1960—Dec. 1961—Dec. 31 31 1962- -Jan. Feb. 31 28 28 25 May- 30 June 30 July 25 Aug. 29 Sept. 26 Oct. 31 Nov. 28 2/Dec. 31 1/ p p p P p P 19k.5 209.6 11U.2 121.1 59.6 6U.7 20.7 210.7 213.3 215.2 215.0 216. U 220.3 217.8 220.3 222.0 22lt.l4 225.8 227.6 120.8 122.6 123.8 12U.5 124.8 126.6 126.1 127.3 129.7 131.7 132.3 13U.8 65.7 66.-1 2k. 2 Adjusted to exclude interbank loans. Estimated as of December 31. 66.1 6k. 6 65.5 66.6 6b.1 65.0 6*4.3 61.1 6U.U 63.8 23.8 2);.6 25.3 25.9 26.1 27.1 27.6 28.0 28.0 28.6' 29.1 29.0 1.4.3. IQANS AT ALL C O M M I R C J A L - E X H I B I T B, P o f t » BANKS Blllion* oMeHofS^ 50 loil Wednesday of m o n t ti,_%mo« on ajly fju,t* 4 BUSINESS REAL E S T A T E CONSUMER SECURITY 1958 1957 1959 Exhibit B - Part I I Real Estate Business ( 1 n b i l l i o n s o f Date 1960—Dec. 1961—Dec. 31 31 U2.1 28.7 30.3 1962—Jan. Feb. March April May June July Aug. Sept. Oct. Nov. l/Dec. 31 28 28 25 30 30 25 29 26 31 28 31 UU.l 30. k 30.6 30.9 31.2 31.6 32.0 p r * 1/ 2/ a.i hh.2 14t«5 UU.8 U5.0 U5.5 p p p p p P U5.5 U6.1 U6.7 U7.2 U7.5 U8.1 1963 1962 19 61 1960 32. h 32.8 33.1 33-5 33.9 31.2 Consumer 2 / d o l l a r s ) 20.5 U.3 r 21.3 5.2 r r r r r r r r r r r 21.3 21.6 21.8 22.1 22.lt 22.6 22.7 22.9 22.9 23.2 23.3 23.5 Preliminary. Revised. Estimated as of December 31. . Revised i n accordance w i t h r e v i s i o n i n consumer c r e d i t s t a t i s t i c s . Security U.8 5.5 6.0 5.6 5.2 5.3 U.U U.7 5.7 5 . 9 5.5 ; 6.1' Exhibit C Changes i n Loans and Investments at a l l Commercial Banks, Seasonally Adjusted (In b i l l i o n s of d o l l a r s ) 19 6 2 1961 Item July Aug.p S e n t . p Oct. p Nov. p Dec. p V - Jan. Feb. Mar. Apr. May June +1.3 +1.1 +2.6 +1.9 -0.1 +1.U +3.9 - - 2 . 5 +2.5 +1.7 +2. It +l.lt +1.8 U. S. Gov't, s e c u r i t i e s —0.6 +1.0 +o.h y -1.5 +0.9 +1.1 -2.5 +0.9 —0.7 -0.2 +0.3 —0*6 Other s e c u r i t i e s +0.2 +0.U 40.lt +0.7 40.6 +0.2 +1.0 +0.5 +0.U 1/ +0.6 +0.5 -0.1 Loans 2 / +1.7 -0.3 +1.8 +1.2 +0.7 40.3 +1.8 -0.5 +1.2 +2. It +2.0 4O.6 +2.5 Business +0.8 V +0.1 40.3 +0.3 +0.2 +0.5 y +0.6 4*0.6 +0.5 +0.3 +0.6 Real e s t a t e +0.3 +0.1 +0.2 +0.3 40*3 +0.5 +0.1t +0.1t 40.lt +0.3 +0.U +0.U +0.3 Consumer 3 / 40.1 y +0.3 +0.2 +6.3 +0.3 +0.2 +0.1 +0.2 y 40.3 +0.1 +0.2 Security V -o.lt +0.7 +0.5 —O.lt -o.lt +0.1 -0.9 +0.3 +1.0 +0.2 -o.lt 4O.6 Nonbank f i n a n c i a l y y -0.1 +0.2 —0.1 +0.1 +0.3 -0.1 40.2 +0.1 +0.3 y Agriculture +0.1 40.3 +0.1 y +0.1 -0.1 +0.1 +0.1 -O.lt +0.1 40.2 +0.2 +0.2 A l l other 3 / +0.1 +0.3 y 40.lt y -0.1 +0.2 +0.1 40.1 +0.1 +0.1 +0.1 1/ Total loans excluding s e c u r i t y and nonbank financial 5/ +1.1* +0.7 40.7 +1.2 +1.0 +0.8 +1. It- +0.7 +0.9 +1.1 +1.5 +1.1 +1.3 Loans and Investments 2 / Dec. y NOTE—Individual loan items may not add to change i n t o t a l loans because: (1) loan items are gross of valuation reserves while t o t a l loans are net; and (2) loan items and t o t a l loans are independently s e a s o n a l l y adjusted. Seasonally adjusted l o a n s , by category, are experimental and are subject t o r e v i s i o n . 1 / Less than $50 m i l l i o n . 2 / Adjusted to exclude interbank loans. 3 / Consumer c r e d i t data revised beginning i n 1961. 11 A l l other" l o a n s , which i s a r e s i d u a l item i s accordingly revised i n the opposite d i r e c t i o n . k / Estimated as of December 31, 1962. 3 / Derived by addition of items and not by subtraction from t o t a l lo^ns. p - Preliminary. • -r Exhibit D Changes i n Loans and Investments a t A l l Commercial Banks, at WeeklyReporting Banks, and at Other Banks, Not Adjusted f o r Seasonal. (In b i l l i o n s of d o l l a r s ) Item Last Wednesday of November <0 end of December 1962 3 / 1961 I960 1959 1958 1957 1956 + li.it + 3.3 + 2.7 + O.lt + 2.8 - 1.3 + 0.3 + 1.7 + 1.7 + 1.3 + 0.5 +~3TE + 1.5 + o.L + 2.0 - 0.6 + 1.3 + l.lt T T 3 * 2.9 + 1.3 + 0.5 — o.i + 1.7 + 0.8 + O.lt — 0.1 + 0.3 A l l commercial banks Total l o a n s U.S. Gov't s e c u r i t i e s Other s e c u r i t i e s Total Weekly reporting banks Total loans Ue S, Gov't s e c u r i t i e s Other s e c u r i t i e s Total Other banks Total loans U 0 S 0 Gov't s e c u r i t i e s Other s e c u r i t i e s Total Item + 5*6 + 0.5 + O.lt + 6»h + it.l + 0.7 + 0.3 • 0.5 + 3.7 + 0.3 * O.lt Tunr + 1.5 - 0.2 + 0.1 0, .7 0., i 0., i "o3 + 0.8 * 0.6 + + 0.2 It.6 + 2.5 * 0.9 * 0.5 7 3 3 + 0.8 - 0.1 + 0.1 7~57? + 2.L + O.it + 0.1 7""53 + 0.3 1/ + 0.1 + 0.5 + 0.1 - 0.7 + 0.2 + 0.2 + 0.2 "+1)3 0.2 0.1 0.1 on Year ended December 1962 3/ 1961 I960 1959 1958 1957 1956 +11.1 + 7.2 + 6.7 2/+12.5 + it. 3 • 3.5 - 0.3 + 1.7 + A l l commercial banks Total loans V.S. Gov't s e c u r i t i e s Other s e c u r i t i e s Total TT577 Weekly- reporting banks Total loans U.S. Gov't s e c u r i t i e s Other s e c u r i t i e s Total + + + Other banks Total loans U.S. Gov't s e c u r i t i e s Other s e c u r i t i e s Total + o.U - 0.7 * 5.3 7.6 2»k 3.7 8.9 + 5.6 + 2.1 + 3.1 7 3 3 + O.lt T7TT + 3.5 + 3.6 + 2.7 + 2.5 + 2.0 + 0.2 7 3 3 7 3 3 + 6.5 + 1.7 + 3.7 + lt.O - O.lt +3TH 7-5% + 1.6 + 2.0 + 1.1 + 0.2 1Z-7.1, + 8.1 + 2.6 IA-^o +37T 2/- 0.1 + 7.7 — 7.0 — O.lt + 0.7 + 5.5 + l.it < r 7T5 2 / + it. 8 + 3.6 + 2/+ 0.3 + 1.2 2/rs3 7-f3 # / - O.lt 2.6 7.6 - 3.0 - o.L + it.2 + 0.9 - 0.2 + - 5.It 3.5 + O.lt TT7E — 0.7 + 2.6 + 2.2 — 0.1 + 1.3 T-%% + 1.2 + 0.5 + 0.3 NOTE—Data exclude a l l interbank l o a n s j c a l l report data f o r weekly reporting banks used when a v a i l a b l e . 1 / Less than $50 m i l l i o n . 2 / As a r e s u l t of bank structure changes, t o t a l c r e d i t increased about $1 b i l l i o n s $600 m i l l i o n in l o a n s j $300 m i l l i o n in U.S. Gov't s e c u r i t i e s 5 and $100 m i l l i o n i n other s e c u r i t i e s . 3 / Estimated as of December 31, Digitized for1962, FRASER f o r a l l commercial banks and weekly reporting banks. • • • • • • # E E E E Exhibit K Changes i n Commercial and I n d u s t r i a l loans at Weekly Reporting Banks (In m i l l i o n s of d o l l a r s ) Business of borrower 1962 1961 I960 1959 1958 +131 - 60 - 99 - 19 + 92 +120 -185 + 27 + 57 + 1*9 -267 -161 +ll*8 +125 -309 +103 ° 7 — 60 + 36 1/ 1/ + 80 - 61* + 12 +123 - 19 + 51 + 9 - 1*2 + 97 - 31* +189 - 27 +195 +133 +207 - 6 +199 Classified Unclassified +323 +163 Total change Food processors Commodity d e a l e r s Trade concerns Total S a l e s finance Metals and products T e x t i l e s , apparel, e t c . Petroleum, c o a l , e t c . Other manufacturing and mining •Public u t i l i t i e s Construction A l l other types of b u s i n e s s Total change excluding s a l e s finance l/ 3/ End of November t o end of December 3 / : y End of December t o end of December ' w 1962 1961 I960 1959 1958 + 31* - 19 +370 + 55 +135 + 8 + 21 -171 +31*6 +179 +375 +1*35 +999 -136 +127 + j* 2/+l*55 -599 +m +m +261* 1/ +139 + 9 + 57 + 81 - 17 - 23 + 77 +111 - 81 -1*19 - 61* - 1*1* +397 + 58 + 7 +717 +160 + 86 —308 -11*8 -151* + 15 +118 + lit + 69 + 6 +119 + 26 + 91* - 1 +150 - 18 + 67 +W4. +138 +165 +I181 +1*68 - 50 +106 +833 +325 + 13 +131 +1*61* +211* +339 +116 +111* + 36 + 57 +106 +1*31 +713 + 98 +120 + 62 +1*13 + 37 +5U0 + 17 +1,723 +52k +1,028 -283 +1,592 -115 +3,188 + 10 -51*1* -377 +1*86 +811 +182 +1*50 +557 +2,21*6 +760 +1,1*77 +3,198 -921 +1*86 +811 +182 +1*50 +293 +2,21+6 +71*5 +1,1*77 i+2,7l*3 -362 Not included i n b u s i n e s s loans on r e v i s e d b a s i s . Through July 1. Four weeks used throughout. / y y 1/ Exhibit F Loans and Investments at A l l Commercial Banks (In b i l l i o n s of d o l l a r s u. s . Govt. Other securities Total loans Business 31 31 31 2it ( o l d ) 2h (new) 31 y 31 16U.5 169.3 l81t.lt l81t.2 18U. 2 189.5 198,5 58.6 58.2 66. b 60.9 60.9 58.9 61.0 16,3 17.9 20,6 20,6 20,6 20.5 20.9 89.7 93.2 97.5 102.8 102.8 110.0 116.7 38.7 lt0.5 lt0.lt lt2.5 37.8 lt0.2 U3.1 22,5 23,1 25,3 26.9 26.9 28.1 28.7 it.3 it. 2 it.7 it.l it.l lt.9 5.1 lt.2 it.l 5.0 5.0 5.0 5.0 5.7 lit.6 15.8 15.9 17.5 17.5 18,8 20.6 5.9 7.1 7.1 6.9 7.2 8.2 8.8 7.6 8.1 8.7 U3.6 15.2 30.1 30.3 5.0 6.2 6.0 6.2 r 21.3 r 21.lt 6.3 7.3 r 9.6 r 9.8 lt3.lt lt3.7 Ut.8 ltlt.7 lt5.o 15.9 lt5.2 U5.8 lt6.7 lt7.i lt7,8 19,3 30.lt 30.5 30.7 31.1 31.5 32.0 32.lt 32.8 33.2 33.6 3lt.O 3lt.3 It.7 5.it 5.it 5.7 5.1 5.3 it.lt it. 6 5.8 5.9 5.3 7.2 6. it 6.6 6.6 6.7 6.6 6.8 6.7 6.2 6.3 6.5 r 6.6 6.9 21.2 21.3 21.5 21.9 22.3 22.7 22.9 23.1 23.1 r 23.3 r 23.it 23.6 6.it 6.it 6.5 6.5 6,6 7.2 6.9 7.2 7.it 7.2 7.2 8.3 r 9.8 r 9.7 r 9.8 rlO.O rlO.2 rl0.5 rl0.3 rlO.lt rl0.7 rl0.7 rll.O 11.0 Date 1956: Dec. 1957: Dec. 1958 s Dec. 1959: June June Dec, I960: Dec. Nonbank financial institutions Loans and investments 1961: Nov. Dec, 29 30 109.1 211i.it 66.2 66.6 23.lt 23.9 119.5 123.9 1962 s Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 28 28 28 30 30 25 29 26 31 28 31 210,9 211.6 212. It 21L.8 215.3 219. 2 217.8 219.0 223,1 225.7 226.7 233.1 67.2 66.0 61t.lt 61*. 7 61t.lt 61t.lt 61t,2 63,9 61,3 65.5 ' 65.lt 65.9 2lt.l 2lt.5 25.lt 26.1 26.1 27:0 27.5 27.9 28.2 28.6 28,8 29.2 119.6 121.1 122.6 12lt.O 121.8 127.7 126.1 127.3 130.6 131.6 13?. It 138.0 p p p p (est.) 1 ! | Real estate Security Farm Consumer r r r r r r r r r All other — — P 1/ Structure changes i n 1959 > on balance through August, added almost $1 b i l l i o n t o t a l c r e d i t ; $600 m i l l i o n in loans; $300 m i l l i o n i n U. S„ Government s e c u r i t i e s ; and $100 m i l l i o n i n other s e c u r i t i e s . Real e s t a t e loans increased about $300 m i l l i o n ; b u s i n e s s loans $100 m i l l i o n ; consumer loans $100 m i l l i o n ; and other loans $100 m i l l i o n , NOTE—Date exclude interbank l o a n s . Total loans are a f t e r and types of loans before deductions f o r v a l u a t i o n r e s e r v e s . Consumer and "other loans" are p a r t l y estimated f o r a l l d a t e s . Other data are p a r t l y estimated on a l l but June and December c a l l d a t e s . Beginning June 2lt 1959, "business loans" and " a l l other loans" have been r e v i s e d t o exclude loans t o nonbank f i n a n c i a l i n s t i t u t i o n s . Consumer and " a l l other" loans revised i n accordance with recent r e v i s i o n i n consumer c r e d i t s t a t i s t i c s . ' ^ Exhibit G Ratios to Total Deposits _1/ U. S. Govt, securit i e s maturing within one year LOANS Date All commercial banks » Total Member banks Reserve c i t y banks New York City of Other City Chicago All commercial banks Country 1948: 19^95 1950s 1951s #952: 1953s 1954s 1955: 1956s 1957? #958s 1959s 1960s Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. Dec. 31 51 31 31 31 31 31 31 31 31 31 31 31 31.2 31.1 35.8 37.2 39.3 40.5 40.3 45.8 48.8 49.7 48.4 54.0 55.1 31.3 30.9 36.1 37.6 39.9 41.1 40.7 46.7 50.1 51.0 49.4 55.6 56.5 35.9 34.9 42.5 46.3 50.6 50.6 46.8 56.7 61.7 61.9 57.7 67.3 65.9 30.4 25.6 32.3 36.2 38.9 39.1 38.3 46.3 52.7 55.2 49.4 58.2 60.8 33.4 32.4 38.1 39.4 41.1 42.2 41.9 48.5 52.7 53.3 51.3 58.2 59.0 27.1 28.5 31.5 32.1 33.9 36.1 37.1 40.7 42.6 44.1 44.4 48.2 50.3 1961s Nov. Dec. 29 30 54.7 54.5 55.7 55.7 63.5 65.0 57.7 58.0 58.3 57.7 50.5 50.2 10.4 10.6 1962s Jan. Feb. Mar. Apr. May June July Aug. Sept. Oct. Nov. Dec. 31 28 28 25 30 30 25 29 26 31 28 26 54.1 54.9 55.4 55.4 55.8 55.9 55.6 56.0 56.4 56.1 56.4 56.8 55.3 56.0 56.5 56.5 56.8 56.8 56.5 57.0 57.6 57.3 57.5 57.9 63.0 64.7 65.8 65.4 64.4 63.6 63.0 65.8 68.8 67.4 66.6 67.8 56.8 58.8 59.2 58.3 57.3 57.5 56.5 57.1 58.6 57.6 57.3 58.6 57.7 58.0 58.3 58.4 59.1 59.0 59.3 59.5 59.9 60.0 60.7 60.3 50.1 50.8 51.2 51.3 51.8 52.1 51.7 51.7 51.6 51.2 51.6 52.0 10.9 11.7 10.6 10.9 11.1 10.7 10.7 11.9 9.8 10.4 9.2 HoBo 9 p p p p p p 1/ 2/ 2/ 2/ 14.2 19.2 15.2 9.8 11.7 16.9 10.0 5.1 7.5 8.4 8.3 6.7 8.1 Total loans (adjusted to exclude loans to banks); U„ S c Government s e c u r i t i e s maturing within one year estimated on b a s i s of Treasury survey of ownership and t o t a l d e p o s i t s (adjusted to exclude cash items i n process of c o l l e c t i o n ) . # 2 / Prior t o 1951> data are on c a l l b a s i s and beginning i n 1951» they are on maturity basis* On a c a l l b a s i s , data f o r 1951 and 1952 are 21.5 and 19.1 r e s p e c t i v e l y . WOTEs Comparability of f i g u r e s a f f e c t e d by changes i n Federal Reserve membership, mergers, e t c . | by changes i n the reserve c l a s s i f i c a t i o n of c i t i e s or i n d i v i d u a l banks, and by changes i n items. Beginning August 1962, f i g u r e s for both New York City and the City # of Chicago include banks formerly c l a s s i f i e d as c e n t r a l reserve c i t y and three banks whole c l a s s i f i c a t i o n as reserve c i t y i s continued. g - Preliminary. 1.4.3. - EXHIBIT H, Port 1 DEPOSITS AND CURRENCY S»hit• monthly ov.ro,.. »• dolly B i l l i o n * of d o l l a r s 160 odi«...«l MONEY S U P P L Y TIME AND SAVINGS DEPOSITS 4i. sr'GoVf: DEPOmSf Not a d j u s t e d t o r s e a s o n a l 1959 1958 1957 1960 "X"All c o m m e r c i a l banks. Exhibit H - Part II Seasonally adjusted data Period Total Money supply Demand Currency deposits {In b i l l i o n s of d o l l a r s ) 28.8 (2) (2) (2) 1U1.8 Ibl.2 D46.O 113.0 112.2 116.4 28.9 29.6 (2) (1) (2) Sept. (1) (2) Oct. (1) (2) Nov. (1) 145.7 145.6 144.8 145.4 145.3 115.5 115.4 30.2 30.2 1959—Dec. 1960—Dec. 1961—Dec. 1962—July Aug. Dec. 116.1 146.2 (l) (2) p 146.7 147.1 14?.4 148.3 114.6 115.2 115.1 115.8 II5.9 116.3 116.6 116.8 117.8 30.2 30.2 30.2 30.3 30.3 30.4 30.5 30.6 30.5 Time and savings deposits U. S. Gov't, deposits 67.4 73.0 82.7 5.2 91.9 92.2 92.7 93.1 93.6 94.3 95.0 95.6 6.0 96.4 97.0 97.9 5.3 5.5 5.4 8.1 6.6 7.8 8 . £ 6.5 5.4 6.6 5.0 6.1 ^ * * 1.4.3 - EXHIBIT I, Pari 1 TI M E A N D SAVINGS D E P O S I T S AT M BAN J L L I F L M A DING CITIES B i l l i o n s of d o l l a r s Wednesday 1 $flu r e s_ 55 50 TOTAL T i l IE AND S A V I N G S D E P O S I T S , 45 40 35 SAVINGS DEPOSITS 30 25 TIME D E P O S I T S OF I N D I V I D U A L S , P A R T N E R S H I P S , AND C O R P O R A T I O N S - 10 Exhibit X - Part II Time Period. Total t"l n and S a v i n g s Savings m i l l ! o n s D e p o s i t Individuals, partnerships, and corporations 7 d o l l a r s ) Other time deposits 1 / 1961- -April 26 Dec# 27 38,175 41,472 27,819 5,480 5,969 4,876 5,421 1962- -July Aug. Sept. Oct. Nov. 25 29 26 31 28 17,257 47,729 48,103 L8,6g8 49,023 33,044 33,404 33,139 34,246 34,459 8,296 8,428 5,917 5,897 5,824 5,724 5,974 5 12 19 26 49,251 49,594 49,765 49,992 34,535 34,572 34,607 34,703 Dec. 1/ ~ 30,082 8,540 8,688 • 8,590 8,713 8,924 9,002 9,082 6,003 6,098 6,156 6,207 Includes S t a t e s and p o l i t i c a l subdivisions, U. S. Government, foreign governments and o f f i c i a l i n s t i t u t i o n s , and interbank. • # \ t • # • e e e • # # Exhibit J Member Bank Reserves (Based on averages of d a i l y f i g u r e s | i n m i l l i o n s of d o l l a r s ) , Excess reserves Borrowings All member A1 I member Total r e s e r v e s held s e a s o n a l l y adjusted 1 / All A±± member , Date AJTLX1 A member Monthly averages: 1956: December 1957: December 1958s December 1959: December I960: December Free reserves (excess reserves minus borrowings; Reserve City Banks New Y ork City of Country Other City Chicago — 36 -133 — Ul -1*21* 669 — 91 -105 - 80 -109 10 - 86 - 77 - 32 -101* - 1* -203 -228 -197 -1*1*9 80 3hh 211 268 237 583 651 577 516 U8l 756 688 710 557 906 87 17,201 17,077 17,91*2 17,978 18,233 1961: November December 509 l*2l* ll* - 50 - 13 - 22 13 2k 1*91* U71 6lii 573 105 lli9 19,059 19,977 1962: January February March April May June 5U6 h3h 379 1*1*0 h3h 370 1*1 11 - 2l* 50 10 - 12 2 - 3 - 6 - 20 3 - 3 20 22 15 9 36 - U 183 l*oi* 39b 1*01 385 389 616 502 U70 509 L?7 h70 10 68 91 69 63 100 19,062 18,986 19,060 19,11*8 19,253 19,312 July August September October November December p 1*1*2 1*37 378 1*19 U70 253 18 7 - 19 3l* 13 - 62 6 - lh - 10 - 1 - 7 - 11 3 2 Ul6 1*1*1 1*08 382 1*83 382 531 561 U58 h8h 589 557 89 127 80 65 119 30h 19,31*8 19,237 19,305 19,1*27 19,1*81* 19, 606 1 NOTE: 5 - 19 — 56 Beginning July 26, 1962, f i g u r e s f o r both New York and the C i t y of Chicago include banks formerly c l a s s i f i e d as c e n t r a l reserve c i t y and three banks whose c l a s s i f i c a t i o n as reserve c i t y i s continued. p - Preliminary. 1 / Revised s e r i e s . Back data and seasonal f a c t o r s a v a i l a b l e , E x h i b i t L, "Banking and Monetary Developments" f o r December 1962. Exhibit K Liquid Assets Held by the Public = Seasonally Adjusted S e r i e s 1 / (Amounts i n b i l l i o n s of d o l l a r s 5 r a t i o s expressed as oercent-ages) Time d e p o s i t s End of year or month Total T 1954 i m 1957 1958 1959 1960 332:! 343«2 356.0 373.1 393.9 399.2 Savings u, s. f.T S . Govt Demand Postal and Govt, s e c u r i t i e s deposits Mutual Commercial savings maturing Savings loan and savings System shares bonds within one banks currency year 6 / banks 3 / 5/ 4/ 2/ ~T T 130.2 133*3 134.6 133.5 48,2 49,7 138,8 139.7 138,4 52.0 Oct. 420.7 122.2 424,6 1962 Jan, Feb, Mar, Apr. May June July p Aug. p Septop Oct, p Nov, p Dec, p 427.1 430.6 435.3 438.2 439.6 442,9 444.1 447.9 449.0 453.4 456.8 458.7 141.7 142.0 142.6 142.0 142.3 142, 143 < 142,8 142.3 142,2 141.3 142.5 143.8 143.4 144.8 2,1 1,9 1.6 57 65 67 73 31.6 33,9 34.9 1,3 1.1 0,9 81,5 82.5 82,5 38.0 38.2 0.7 0.7 1961 Nov, Dec. M 30o0 85 86 87 88 89 91 91 92 93. 95' 96.8 97.4 36,2 38,3 38,6 38,8 39.0 39c, 2 39,,3 39..7 40.,0 40,, 2 40,>5 40,.9 41,, 2 41.,3 0,8 0,6 6 ,6 ,6 ,6 .6 ,6 6 0.6 0,6 0,6 .5 ,5 T -8- 27.2 32.0 37.0 41.7 47.7 54.3 55.6 55.9 54.8 30,6 35.6 61.8 50,5 47 47.0 48,8 68.9 69.8 70.5 47.3 47.4 47.4 41.7 71.1 47, 47< 47« 47, 47, 47, 4747= 47. 47. 47. 47= 71.8 72.8 73.4 74.0 74,8 75.4 76.4 77.4 78.2 79,2 80.0 51.6 31,6 33.2 38,8 41.9 Liquid a s s e t s t o gross national, product 7 / Rati os s Demand deposits and currency t o gross national product?/ ~ir & 79, 80, 80, 80. 79.0 35.0 32.6 31.2 30,3 29,9 28.7 27.5 42.6 42.6 42.4 43,3 45.5 45.6 45.7 Commercial bank d e p o s i t s & currency tc liquid assets (2+3*1) 78.2 78.8 26,3 26.1 m 54.4 53.6 54.8 52,6 53.0 53.1 53.2 53.0 53.2 53.1 52.8 46.9 46.8 79.5 25,9 52.9 52.9 52,7 46.6 80.3 25,6 52,6 49.2 47.2 48.2 47.1 52.6 52.2 52.7 80.8 25.5 52.6 52.8 Far f o o t n o t e s s e e next page IQTE* This i s a new s e r i e s f i r s t shown i n "Banking and Monetary Developments" f o r November 1962, and d i f f e r s from the one p r e v i o u s l y shown i n concept and coverage. Back f i g u r e s a v a i l a b l e from Banking S e c t i o n , D i v i s i o n of Research and S tatistics. Exhibit ] 1/ Excludes holdings of the United S t a t e s Government, Government agencies and t r u s t funds, domestic commercial banks, and Federal Reserve Banks. Adjusted to avoid double counting whereever n o s s i b l e . A l l s e r i e s adjusted f o r seasonal v a r i a t i o n by the X-9 variant of Method I I developed by the Bureau of the Census. 2/ Data are f o r demand d e p o s i t s adjusted and currency outside banks and are as of the l a s t Wednesday of the month. In concept the f i g u r e s agree with the d a i l y average money supply described i n d e t a i l i n the Federal Reserve B u l l e t i n f o r August 1962, p* 9Ul, except t h a t demand d e p o s i t s held by mutual savings banks and by savings and loan a s s o c i a t i o n s have been deducted to avoid double counting. Demand d e p o s i t s of commercial banks n Alaska and Hawaii are included beginning January 1959 and August 195% r e s p e c t i v e l y , except t h a t one n a t i o n a l bank i n Alaska and 1 n a t i o n a l bank i n Hawaii were included i n April 195k and April 1959, r e s p e c t i v e l y . Demand d e p o s i t s due to banks i n United S t a t e s possessions are included throughout. 3/ Total time d e p o s i t s at commercial banks except interbank, U. S. Treasurer's open account, and p o s t a l savings redeposited i n commercial banks. Data are as of the l a s t Wednesday of month except June 30 and December 31 when c a l l data f o r these dates were used when a v a i l a b l e . Time d e p o s i t s of commercial banks i n Alaska and Hawaii and time d e p o s i t s due to banks i n U. S. possessions are included as indicated f o r demand d e p o s i t s i n f o o t n o t e 2 above. h/ Figures compiled by the Federal Savings and Loan Insurance Corporation except that prior t o 1955 data are Board estimates based on monthly f i g u r e s of i n f l o w of new savings and withdrawal of savings c a p i t a l compiled by the Federal Home Loan Bank Board. 5/ Includes a l l types of savings bonds held by investors other than commercial and mutual savings banks and U. S. Government agencies and t r u s t funds. Holdings of savings and loan a s s o c i a t i o n s are a l s o excluded beginning i n February I 9 6 0 , - t h e e a r l i e s t date f o r which separate f i g u r e s f o r these i n s t i t u t i o n s are a v a i l a b l e . Figures are from data compiled by the U. S. Treasury Department. 6/ Beginning December 1950 f i g u r e s include Treasury marketable s e c u r i t i e s and Federal agency s e c u r i t i e s maturing w i t h i n one year, except holdings of domestic commercial, mutual s a v i n g s , and Federal Reserve Banks, Government agencies and t r u s t funds, and beginning February I960, savings and loan a s s o c i a t i o n s . Figures have been adjusted tc include p a r t i a l l y tax-exempt s e c u r i t i e s 12 months prior t o f i r s t c a l l d a t e , and, prior t o 1956, nonmarketable Treasury savings notes with m a t ur i t i e s up to 36 months. Prior t o December 1950 f i g u r e s for marketable i s s u e s include s e c u r i t i e s c a l l a b l e within one year. Figures represent par value and are from the U. S. Treasury Department's Survey of Ownership of U. S. Government s e c u r i t i e s . ]/ Gross national product f i g u r e s are a v a i l a b l e quarterly and annually only. Data f o r t o t a l l i q u i d a s s e t s used i n computing these r a t i o s are quarterly averages calculated f o r f o u r dates (each month of the current quarter and the l a s t month of the preceding quarter). Exhibit L TOTAL MEMBER BANK RESERVES 1 / Unadjusted Data ( d a i l y average f i g u r e s 3 in m i l l i o n s of d o l l a r s ) Year T9UB 19it9 1950 1951 1952 1953 1951 1955 1956 1957 1958 1959 i960 1961 1962 1963 Jan. lit 380 13 99k lit k02 15 0U8 16 010 16 368 16 757 17 199 17 225 17 3o8 17 357 18 3itU 18 3itl 18 725 19 it05 Feb. 13 828 13 67 it lit 063 lit 728 15 586 16 015 16 181 16 928 16 8itit 16 928 17 100 18 026 17 688 18 360 18 872 Mar. 13 686 13 5it8 lit 017 1U 959 15 783 15 912 16 1% 16 751 17 026 16 975 17 377 17 869 17 it9it 18 195 18 831 Apr. 13 13 386 13 851 15 07it 15 it09 15 588 16 055 16 899 16 957 17 164 17 5it3 18 10lt 17 569 18 261 18 995 May 13 13 lit 15 15 16 16 16 16 17 18 17 18 19 itOl 889 699 391 510 152 852 852 928 671 019 696 222 080 June 13 lit 15 15 15 16 16 17 17 18 17 17 18 19 it20 110 063 689 8itit it5! 826 033 057 020 893 7it6 ItOl 177 Sept. July 13 706 14 168 14 15 16 16 16 16 17 18 18 17 995 965 10I4 446 930 955 197 031 110 963 18 413 19 290 13 14 lit 15 16 865 174 953 819 160 16 16 16 18 18 17 816 899 93b 009 063 937 13 990 lit it 70 15 12 it 16 015 16 16 16 17 17 195 555 837 121 043 19 160 18 18 18 19 0i|8 125 705 266 13 13 14 15 15 16 16 16 17 17 18 18 18 18 19 13 13 14 15 15 16 16 16 17 17 17 18 18 18 19 811 907 398 094 999 179 588 888 173 094 920 102 161 742 305 16 618 18 567 17 866 Novo lit lit 15 16 16 025 "599 532 C68 183 16 986 16 975 17 01*8 17 116 17 926 18 068 18 287 18 993 19 52it lit 037 lit 605 15 448 16 185 16 1' 17 17 17 330 289 016 271 055 18 18 19 19 09k 469 173 601 18 005 Dec, 13"" 98 2" lit 181 15 193 15 86it 16 533 16 503 17 344 17 317 17 59? 17 470 18 355 18 392 18 703 19 20 C37 Seasonally Adjusted Data Year 1^718 1949 1950 1951 1952 1953 195it 1955 1956 1957 1958 1959 i960 1961 1962 1963 lit 13 lit lit 15 16 16 16 16 17 17 18 18 18 19 016 639 037 681 635 031 445 928 95it 094 08 it 037 017 39it 062 13 13 lit lit 15 16 16 16 16 17 17 18 17 18 18 842 687 077 7it3 602 031 213 979 980 066 23153 795 it71 986 13 13 lit 15 15 15 16 16 17 17 17 18 17 18 19 169 630 102 019 8it6 976 277 869 146 112 535 068 706 it 16 060 Apr. 13 818 13 659 lit 13it 15 366 15 723 15 6y0 16 333 17 070 17 0it2 17 250 17 631 18 195 17 693 18 408 19 lit8 13 13 Ik 15 15 15 16 17 17 17 17 18 17 18 19 838 703 20x 030 737 843 431 074 022 082 831 183 857 387 253 June 13 7% 13 542 14 238 15 184 15 816 15 972 16 550 16 911 17 119 17 143 18 111 18 019 17 871 18 531 19 312 13 13 14 15 15 16 16 16 16 17 18 18 17 18 19 762 817 254 070 907 136 479 964 972 214 049 12P 981 468 348 854 949 288 074 947 258 718 948 001 036 081 136 009 642 237 Oct. 13 740 13 900 14 469 15 409 15 956 16 086 16 901 16 941 17 014 17 082 17 890 18 032 18 250 18 917 19 427 Nov. 13 13 14 15 16 16 17 16 17 17 17 18 18 19 19 772 939 503 341 057 200 152 898 202 004 9CT 022 3(6 059 484 Dec, 13 654 13 849 14 822 15 477 16 130 16 938 16 928 16 911 17 201 17 077 17 942 17 9 7 R 18 --33 19 V / 7 19 6 0 6 (Exhibit L (Continued) TOTAL MEMBER BANK RESERVES 1 / Seasonal Adjustment Factors 2 / Year 1940 1949 19# 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 1962 1963 Jan. 102.6 102.6 102.6 102.5 102.4 102.1 101.9 101.6 101.6 101.6 101.6 101.7 101.8 101.8 101.8 101.8 Feb. 99.9 99.9 99.9 99.9 99.9 99.9 99.8 99.7 99.2 99.2 99.2 99.3 99.4 99.4 99.4 99.4 Mar. 99.4 99.4 99.4 99.6 99.6 99.6 99.5 99.3 99.3 99.2 99.1 98.9 98.8 98.8 98.8 98.8 Apr. 90.0 98.0 98.0 98.1 98.1 98.1 98.3 99.0 99.5 99.5 99.5 99.5 99.3 99.2 99.2 99.2 May 97.5 97.8 97.8 97.8 97.8 97.9 98.3 98.7 99.0 99.1 99.1 99.1 99.1 99.1 99.1 99.1 June 99.1 99,1 99.1 99.2 99.2 99.2 99.4 99.5 99.5 99.5 99.5 99.3 99.3 99.3 99.3 99.3 July 99. i 99.2 99.4 99.5 99.8 99.8 99.8 99.8 99.9 99.9 99.9 99.9 99.9 99.7 99.7 99.7 Aug. 99.4 99.4 99.2 99.2 99.2 99.4 99.4 99. U 99.4 99.4 99.6 99.6 99.6 99.6 99.6 99.6 Sept. 100.7 100.6 100.5 100.2 100.1 100.1 99.8 99.7 99.7 99.7 99.7 99.7 99.8 99.8 99.8 99.8 Oct. 100.9 100.9 100.9 100.8 100.7 100.6 100.5 100.2 100.2 100.2 100.2 100.2 100.2 100.4 100.5 100.5 Nov. 100.7 100.7 100.7 100.7 100.8 100.8 100.8 100.7 100.4 100.3 100.3 100.3 100.4 100.6 100.6 100.6 Dec. 102.4 102.4 102.5 102.5 102.5 102.5 102.4 102.4 102.3 102.3 102.3 102.3 102.3 102.2 102.2 102.2 1/ Figures are a c t u a l f o r the period beginning w i t h November 1962, when the l a t e s t change i n reserve requirements became e f f e c t i v e 0 In order t o e l i m i n a t e the e f f e c t s of d i f f e r e n c e s i n reserve requirements i n e a r l i e r months s f i g u r e s f o r those months were synthesized by taking the sum of a c t u a l e x c e s s reserves and a f i g u r e f o r required r e s e r v e s reconstructed by applying November 1962 reserve requirements a g a i n s t demand and time d e p o s i t s by c l a s s of bank, 2/ Based on f i g u r e s f o r the period January 1948 - October 1962.